If you’re searching for a unique and functional present, bitcoin may be a terrific choice. Over 14% of Americans already hold bitcoin, and digital currencies are on the verge of becoming ubiquitous in 2021.
It is, however, not the ideal present for everyone. Let’s take a look at some of the benefits and drawbacks of giving digital currency before we get into how to acquire crypto as a present.
Cryptocurrency is adaptable. Because more and more businesses are accepting cryptocurrency payments, a gift of Bitcoin (BTC) may be more adaptable than a traditional gift card. The receiver may spend or trade it if they don’t wish to hold it as an investment.
It’s possible that this may be a gift that keeps on giving. Many individuals consider cryptocurrency to be an investment vehicle. Your bitcoin contribution may appreciate in value over time. You never know what the crypto will be valued in a few years if the gift recipient decides to keep it long-term.
You may give any quantity of cryptocurrency as a gift. A single Bitcoin is now worth roughly $50,000, but you don’t have to purchase one in its whole (or any other coin). In fact, you may offer someone BTC for as little as $1. It may be impractical due to transaction costs, but it is doable.
There are no problems with the supply chain. There’s no way your crypto present will be out of stock or trapped in a warehouse someplace while merchants and suppliers try to keep up with demand.
Here is how to give crypto as a gift
- Choose the coin you’d want to donate.
On the market, there are hundreds of different cryptocurrencies. However, as a present, it’s best to stick to the more well-known currencies like Bitcoin, Ethereum (ETH), Cardano (ADA), or even Solana (SOL). Consider a stablecoin, which is a cryptocurrency that is tied to a commodity like the US dollar and has reduced transaction costs.
Because the cryptocurrency market is still relatively young and unproven, only a small number of tokens are likely to survive in the long run. Given the possibility that the fortunate receiver of your crypto gift would not actively trade it, a more established currency or stablecoin is a preferable choice.
- Choose how you wish to give your cryptocurrency.
There are a number different methods to give cryptocurrency as a gift, just as there are with cash. Before you give the cryptocurrency, you’ll need to purchase it:
You may make use of a cryptocurrency exchange. You may just transfer crypto to the public address of the person you’re purchasing for if they already have a crypto wallet. You’ll have to ask them for the address, so it’s unlikely that you’ll be able to surprise them. Gift cards are available from certain crypto exchanges, such as Coinbase and Binance, but the receiver will need to create an account to redeem the gift.
You may purchase a cryptocurrency gift card. Crypto gift cards are available on a few different sites. Make sure you do your homework beforehand since gift card systems are rife with scammers. Look for internet reviews and only purchase from a reputable retailer.
A paper wallet is an option. A public and private key are used in cryptocurrency transactions. The public key functions similarly to your bank account number, while the private key functions similarly to your PIN. A paper wallet is a safe method of printing the key on a sheet of paper (often using a QR code). The receiver may scan the code and deposit the cryptocurrency into their preferred wallet.
A hardware wallet is an option. A actual hardware wallet may be a terrific present in and of itself if you’re shopping for a crypto phile. These are little gadgets that aren’t connected to the internet, making them less vulnerable to hacking.
- Prepare to explain crypto to your relatives and friends.
You may have some explaining to do if the fortunate receiver of your crypto present doesn’t know their blockchain from their supply chain. The most essential thing is to make sure your recipient knows how to safely keep their cryptocurrency gift, as well as where they can learn more if your gift has piqued their curiosity.
Cryptocurrency presents aren’t for everyone. However, if you’re a crypto fan who wants to put some cryptocurrency under the Christmas tree, the techniques outlined above will assist you.